HDFC Bank launches up to $2.26 billion share sales in U.S. and India

NEW DELHI/BENGALURU (Reuters) - HDFC Bank Ltd (HDBK.NS) launched separate share sales on Monday in the United States and its home Indian market in a bid to raise as much as 155 billion rupees ($2.26 billion).

The headquarters of India's HDFC bank is pictured in Mumbai, India, December 4, 2015. REUTERS/Shailesh Andrade

The Indian lender, which is also listed in New York (HDB.N), is offering up to 19 million American Depositary Shares, representing 57 million equity shares, according to a filing.

HDFC, the Indian bank with the highest market capitalisation, also opened a share sale in India, which according to a deal term sheet has a base size of 20 billion rupees with an option to upsize to up to 37.5 billion rupees.

The second-biggest Indian lender by assets has set a floor price of 2,179.13 rupees ($31.75) for both of the share sales. Based on the floor price, the American share sale could raise as much as 124.21 billion rupees, Reuters calculations showed.

With its focus on retail clients and a lower bad-loan ratio, HDFC Bank is an investor favourite at a time when India’s banking sector has been plagued by a record $150 billion in non-performing loans.

HDFC Bank, which has the lowest bad-loan ratio among leading Indian lenders, announced plans in December to raise a total 240 billion rupees ($3.5 billion) to fund growth.